North Carolina Down Payment Assistance Systems

Payments Gateway - The North Carolina Housing Finance Agency got two amazing plans for first-time Home Buyers. These systems are the Down Payment Assistance Program along with the Mortgage Credit Certificate.

Should you meet the requirements for one of these plans and you also purchase a home and December 1, 2009, you may also be eligible for the $8,000 tax credit just enacted into law.

First, who's a first-time Home Buyer? A first-time Home Buyer is someone who hasn't owned a home in the past three years. This is the same qualifying definition for the $8,000 tax credit.

A Mortgage Credit Certificate (MCC) is a federal tax credit to assist home buyers with low and average incomes. All home owners can claim an itemized deduction. The MCC takes this a step further.

You are able to claim 20% of the interest you pay as a credit in your federal income taxes should you qualify for the MCC. You can save as much as .

You'll manage to unite this if you do qualify for 2009. This may reduce a purchaser's tax liability by $10,000.

Who Qualifies for an MCC?

Who qualifies for an MCC is based on the cost of the property and also your income you're purchasing. Household income means the “gross income of the mortgagor and any other man anticipated to reside in the home who's 18 years of age or older.”

The income and house price limits that apply in Durham Orange and Chatham Counties are given below.

MCC Income Limitations 1 Individual $61,500 2 Men $61,500 3 Individuals $70,500 4 Men $70,500

MCC Sales Cost Limits New House $220,000 Existing Dwelling $210,000

Who Qualifies for Down Payment Assistance?

The purchaser just needs to pay $1,000 of their own funds and the load would pay around .

This program has more rigorous income limitations than the MCC plan summarized above. Like the MCC program, it might be used along with the new $8,000 tax credit on home purchases between January 1, 2009 and December 1, 2009. The down payment help, nonetheless, can't be applied in combination with the MCC. It is an either or scenario.

House price limits that apply in Orange, Durham and Chatham Counties and the income are given below.

Down Payment Assistance Income Limitations

1 Individual $39,950 2 Individuals $45,650 3 Individuals $51,350 4 Individuals $57,050

Down Payment Support Sales Cost Limits New Home $210,000 Existing House $210,000